LSI Logic agreed to acquire Agere Systems in an all-stock transaction with an equity value of approximately $4.0 billion. Under the deal, LSI and Agere shareholders will own approximately 52% and 48%, respectively, of the combined company.
Agere is a leading supplier of semiconductors and software for storage, mobility, and networking markets, including for cell phones, wireless and wireline systems, PCs, and hard disk drives. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications.
The companies had combined revenue of $3.5 billion for the 12 months ended September 30, 2006. The companies operate in more than 20 countries, with a combined workforce of approximately 9,100 employees, including nearly 4,300 engineers.
LSI Logic said the acquisition will make it a semiconductor and storage systems powerhouse. The combined company expects to realize annual cost savings reaching at least $125 million in 2008 from increased efficiencies in manufacturing and operating expenses. LSI president and chief executive officer Abhi Talwalkar will serve as president and chief executive officer of the new company, which will be headquartered in Milpitas, California, and will maintain a significant presence in Allentown, Pennsylvania with various other locations worldwide.
http://www.lsilogic.comhttp://www.agere.comAgere Systems was formerly the Microelectronics Group of Lucent Technologies. Agere was spun-off from Lucent in 2002.
